Muted prices, rising costs to make brew tepid for tea firms this year
Tea auction prices are seen range-bound this year, with marginal improvement to Rs 147 per kilogram, given the price-sensitive market, according to Crisil Research.
Tea auction,
Rs 145-146 per kg- Auctions are likely to close calendar 2018 on average. Image source: Reuters
3-4 per cent higher- It would be, compared with a CAGR of 1.4 per cent logged over calendar 2012-2017. Image source: Reuters
140-170 bps- Profit margins of tea planters likely to contract this fiscal. Image source: Reuters
100 bps- Margins may drop in fiscal 2020. Image source: Reuters
200-240 bps- Margins of integrated players expected to contract this fiscal. Image source: Reuters
3.2 per cent CAGR of tea production in India over 2012-2017. Image source: Reuters
1.7 per cent CAGR- Rise in consumption during the period. Image source: Reuters